Business

Petrol pump profit margins: How much do owners earn per litre?

Let's look at profit margin earned by petrol pumps when filling a litre of fuel and other modes of income.

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Profit based on several factors

Profit of fuel pumps in India can vary based on several factors.

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Margin is low

Generally, the profit margin on fuel sales is very low.

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Profit per liter

Often, the pump owner receives Rs 2 to 3 per litre.

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Ways to increase profit

Overall profit can be increased in many ways.

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Additional services

Car washing, convenience stores, restaurants, etc. will increase the income of the pumps.

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Sales volume

Even though the margin is low, high sales volume will lead to better overall profit.

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Location

Pumps in busy locations perform better.

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Operating cost

Efficiently managing operating costs will improve net income.

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Monthly profit

A busy petrol pump can earn a net profit of Rs 1 lakh to 5 lakhs per month. But it can vary greatly based on the factors mentioned above.

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